Consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.2 per cent in August after an unrevised 0.5 per cent gain in July, the Commerce Department's Bureau of Economic Analysis reported on Sept 27. Economists polled by Reuters had forecast consumer spending climbing 0.3 per cent.
Consumer spending continues to be supported by still-solid wage gains even as the labour market has slowed considerably. Annual revisions to national accounts data published on Sept 26 showed stronger wages and salaries growth in the second quarter than had been previously estimated.
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